How To Apply For Home Improvement Loan In India | Best Home Improvement Loan
How To Apply For Home Improvement Loan In India
To Renovate and refurbish your home, need huge amount but you can make it easy with the help of home improvement loan. So, let’s discuss How To Apply For A Home Improvement Loan. Banks and NBFCs provide home improvement loans as per 80 to 90% predictable costs of upkeep. Attractive interest rates and excellent repayment options are available so customer can take the benefit of this loan. If you do not know so don’t take any kind of stress because we have presented the Best Home Improvement Loan details and their applying procedure in this article.
Beautiful and tidy home create a positive impact on your image because the beauty of your home is as important as the beauty of your outfits. You can take the loan for many purposes like as remodeling, painting, internal and external repairs and also for construction work. The bank will examine your property and after the completion of legal process you can easily take Home Improvement Loan.
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Any home owner is applicable to apply for home improvement loan who want to renovate or reconstruct of his home. Bank will sanction a loan on the basis of the LTV and the repayment capacity of applier. If the applier is regular customer of bank then it impacts a positive effect on your application form. The applied amount not exceed than 85% of the property value. If you apply for more than amount of property rate then your application form will be rejected by the bank organization. Your repayment capacity must meet the requirements of bank.
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If the applier has already taken the home loan then the process of home improvement loan becomes more convenient. The applier needs the documents of construction or renovation work and need to submit to the bank. After submitting the all required documents bank estimate the site and associated values.
Bank verified all the submitted documents then approve the Improvement Loan of applicant. The amount of loan is decided on the basis of construction work and repayment capacity of applier. But if you are fresh applicant you will have to undergo all the processes and need to submit income and all property documents.
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Tax Benefit On Home Improvement Loans
Under Section 24 of the Income Tax Act, the interest paid on the home improvement loan is tax deductible up to Rs 30,000 per annum. Both the owner and co owner are eligible for tax deduction on the interest paid on such loans.
- Under section 24, you can take the tax benefit of maximum 30,000 per annum which is part of the overall tax benefit of Rs 1, 50,000.
- Owner of the home as well as co owner of the home is applicable for tax deduction benefit.
- Fixed Rate Loans: 2% of outstanding amount
- Fixed Rate Loans: 2%/3% for balance transfer
Interest Rate On Major Banks
Home Improvement Loans means, take the money from bank for the renovation and reconstruction purpose and pay back such amount in terms of small EMI with particular interest rate. The Maximum tenure is possible for home improvement loan is 15 years so you can’t increase your period more than it. Most of bank offers 9.5-10.5% percent interest rate rest of procedure depends on loan amount and eligibility of lender.
The loan request is based on the amount you needed. If you are a new customer of bank then the following procedure will apply on you. For example if you apply for Rs.20 lakh then you will acquire 90% funding, if you need loan amount between the Rs.20 lakh and Rs.75 lakh then you obtain 80% funding. But if your requirement is more than Rs.75 lakhs then in such a case you will get 75% funding.